Macy’s, Inc. (M), one of the leading department store retailers in the United States, recently announced the closure of five underperforming stores located in Boise, Idaho; Waterford, Michigan; St. Ann, Missouri; Missoula, Montana and Burlington, New Jersey.
Following the closures, Macy’s will operate 849 stores, including 809 Macy’s and 40 Bloomingdale’s. Clearance sales at the closed stores will begin on Jan. 10, 2010, and will run for nearly 60 days. The closures will affect 307 employees. Macy’s hinted that it will try to accommodate displaced employees in nearby stores if possible.
Macy’s has been experiencing sagging comparable-store sales. The company forecasted comps to decline in the range of 5.4% to 5.7% in fiscal year 2009. However, the company is taking steps to increase sales, profitability and cash flow at stores. These include integration of operations, consolidation of divisions and customer centric localization initiatives.
In 2009, the company opened five new Macy’s department stores, re-opened two Macy’s department stores that were damaged in 2008 by Hurricane Ike, and opened one Macy’s department store, a replacement store. In 2010, the company plans to open two new Bloomingdale’s stores, one in Santa Monica, California and the other in Dubai, U.A.E. — its first international location.
Based in Cincinnati, Ohio with another office in New York, Macy’s through its retail stores and websites (macys.com and bloomingdales.com) trades in a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods.
Read the full analyst report on “M”
Zacks Investment Research
